Marketing automation platform operator dotdigital Group PLC (LON:DOTD) traded in line in the second half of 2017, with strong growth in revenues.
Group revenue rose 25% to £18.8mln in the six months to the end of 2017 from £15.0mln in the first half of the year, with organic revenue growth clocking in at 17% to £17.5mln from £15.0mln in the first half.
International sales represented a quarter of all sales, with overseas revenues up 22% from the first half of the year. Revenue from the US region was up roughly 44% to US$3.3mln from US$2.3mln in the first six months of 2017, driven by dotdigital’s channel partners and system integrators for Magento and Shopify.
Sales in the Asia Pacific shot up, albeit from a small base, to roughly A$0.9mln from A$0.5mln. Underlying earnings (EBIT) were in line with management’s expectations. The cash balance at the end of the year was £10.5mln, reflecting cash outflow of £11.5mln for the acquisition and funding of Comapi during the period.
"The last six months have been transformational for dotdigital as we have made good progress with many of our strategic initiatives. Our international offering continues to go from strength to strength and in acquiring Comapi, we have taken a significant step toward creating a fully-fledged, omnichannel marketing automation platform,” said Milan Patel, the chief executive officer of dotdigital.
“I am pleased with both the speed of integration of Comapi and the enthusiasm shown by both sets of employees, while revenues delivered since acquisition have exceeded our original expectations,” he revealed.
“Elsewhere during the period, our strategic partnerships have moved forward as we have strengthened our relationships with Magento, Shopify and Microsoft. These partnerships continue to increase our addressable market in all our regions,” Patel added.
Sales through strategic partners increased by 35% to £7.2mln from £5.4mln in the first half.
During the period the group launched additional features to support customers achieve compliance with the new general data protection regulation (GDPR).
“As GDPR implementation moves closer, we are increasing our efforts to educate the market through our seminar programme and by highlighting the additional features now available on our platform to help achieve compliance with the expected new regulations that come into force in May 2018,” Patel said.
In a note to clients, analysts at ‘house’ broker finnCap said: “With cash of £10.5mln the group retains the wherewithal to pursue all strategic opportunities, including further acquisitions.
“We lift our target price to 115p, a premium rating worthy of consistent strong delivery.”
In late afternoon trading, dotdigital shares were 1% higher at 99p.
-- Adds broker comment, share price --